Cryptocurrency venture capital is in a downturn, from Kyle Samani's departure to collective industry pessimism.

As the long-term correction in the crypto market continues, pessimistic expectations have spread from the trading sector to the investment community. In the past week, several top investors in the industry have repeatedly expressed their views, reflecting a complete collapse of confidence among venture capital firms in this once-hot sector. This wave of “decline 13” affecting the entire VC ecosystem marks that crypto investment is facing an unprecedented dilemma.

Leading VCs Resign and Question the Industry

Kyle Samani’s decision to leave Multicoin Capital is just the beginning of the industry’s wave of pessimism. Subsequently, Arthur, CEO of DeFiance, publicly stated that the current VC model is no longer sustainable, and future institutional capital will mainly focus on projects that generate real cash flow, rather than purely technological innovation or hype.

Meanwhile, Simon Dedic, founder of Moonrock Capital, revealed an even more shocking fact—during recent industry exchanges, after in-depth discussions with at least five top-tier venture investors, he found that these institutions either fundamentally doubt the market’s recovery ability or have already completely withdrawn from related fields.

VC Model Ends, Capital Seeks New Outlets

The logic behind this collective attitude shift is clear: traditional crypto investment models rely on market enthusiasm and liquidity. When both disappear, the true value of many projects is exposed. VCs have realized that many sectors they once bet on lack real application demand or profitability.

Faced with a lack of capital options, investors originally focused on crypto are now turning their attention to more certain sectors like artificial intelligence and Web2 stocks. This not only reflects a reassessment of the crypto industry’s prospects but also reveals a deeper understanding within the VC circle that the industry cycle has peaked.

From Boom to Cold Silence, Industry Confidence Crisis Is Inevitable

When the most optimistic institutional investors about blockchain’s future start to turn away, the crypto industry faces more than just cyclical adjustments—it’s a systemic confidence crisis. The statements and actions of Kyle Samani, Arthur, Simon Dedic, and others serve as a barometer of this “decline 13” predicament, indicating that the VC world has shifted from blind optimism to rational pessimism.